If you are an early-stage founder, you have probably looked at platforms like Carta, Pulley, AngelList Equity, or Eqvista. These cap table management software platforms are genuinely useful, and in many cases essential. But founders sometimes confuse using cap table software with having their cap table properly administered. Those are not the same thing.
Here is an honest look at what these tools do, how they compare, and — more importantly — where all of them stop.
What These Platforms Do Well
Carta is the market leader. It is used by more than 50,000 companies and is deeply integrated into the venture ecosystem. Most top law firms, VCs, and accelerators are already on Carta, which makes coordination easier. It handles cap table tracking, option grants, 409A valuations, and electronic document signing. If you raise a priced round, there is a good chance your investors will ask whether you are on Carta.
Pulley is a strong Carta alternative, particularly for growth-stage companies that want scenario modeling and a cleaner interface. It is generally less expensive than Carta and has a reputation for responsive customer support.
AngelList Equity is well suited for companies doing SPV-based seed rounds and founders who are already in the AngelList ecosystem. Its cap table tools are solid for early-stage companies, though it may not scale as cleanly into later rounds.
Eqvista and similar alternatives offer lower price points and can be appropriate for pre-seed companies that do not yet need the full infrastructure of Carta.
We work with founders on all of these platforms. None of them require you to switch to work with us.
What None of Them Can Do
Every one of these platforms carries the same disclaimer: they are not your lawyer.
That matters more than most founders realize. Here is what software cannot do for you:
It cannot advise you on your 83(b) election. The 30-day deadline to file an 83(b) election after a restricted stock grant is absolute. A platform can remind you it exists. It cannot tell you whether your specific grant requires one, whether the election was properly executed, or what happens if you miss the window. The tax consequences of a missed election can be severe.
It cannot protect your QSBS eligibility. Section 1202 of the Internal Revenue Code offers a federal capital gains exclusion worth $10 million or more — but only if your cap table has been administered correctly from the beginning. Certain redemptions, improper issuances, and structural errors can quietly disqualify your stock from this treatment. No software flags these issues in real time. Some problems can be fixed later, but others cannot — especially if the issue is discovered during diligence shortly before a financing or acquisition.
It cannot substitute for the underlying legal and tax analysis. Rule 701 caps how much equity private companies can grant annually without triggering SEC disclosure requirements. Section 409A requires that options be granted at fair market value with a current valuation. Platforms can help track issuance amounts and valuation dates, but they rely on the accuracy of the underlying legal and tax analysis.
It cannot catch documentation gaps that kill deals. Acquisition due diligence involves a detailed review of every equity grant ever made by your company. We regularly see companies discover missing board approvals, unsigned stock purchase agreements, or defective option grants only after investor diligence begins. Software does not know what it does not have.
The Right Way to Think About It
Cap table software is infrastructure. It is excellent at what it does. Think of it the way you think of accounting software: QuickBooks does not replace your accountant, and Carta does not replace your startup attorney.
The companies that get this right use both. They pick a platform that fits their stage and investor relationships, and they have an attorney who understands equity compensation, tax law, and the legal requirements that govern how equity is issued and tracked.
We provide that legal layer. We work alongside whichever platform you use, review grants before they are made, advise on 83(b) elections and QSBS eligibility, and help make sure your cap table will hold up when it matters — at a financing, an acquisition, or an IPO.
It is much easier — and far less expensive — to fix cap table problems early than during financing or acquisition diligence. If you want to talk through your situation, schedule a 20-minute call. Or read more about our cap table administration services.
